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  • Article / 14 March 2016 at 11:00 GMT

    Chinese stocks soar on regulatory retreat

    Saxo Capital Markets China
    China
    Chinese stocks soar on regulatory retreat
    China stock market soared on Monday on expectation that the reform of IPO registration system will come later than previously expected and will only be implemented gradually and slowly. The Growth Enterprise Market Indexsurged by 4.56%. The benchmark Shanghai Composite Index rose 1.75% to close at 2859.5.
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  • Editor’s Picks / 07 March 2016 at 16:28 GMT

    Defusing derivatives spotlights clearing-house risks

    Bloomberg
    Global regulators are turning their attention to an important matter of unfinished business: ensuring that bad bets on derivatives can't upset the entire financial system, Bloomberg View editors say in an opinion column. And they are focusing on the risks related to clearing houses. "The 2008 financial crisis proved that derivatives had gotten out of control," the editors say. Clearing houses will play an increasingly important role in containing systemic risk, setting limits on leverage for banks, hedge funds and other investors, they say. "The clearing houses are too important to fail, and the current rules governing their risk management are too lax...Greater transparency and specific capital requirements would be a good start." Regulators should publicly stress-test clearing houses as they do banks, and should require them to disclose enough information to assess the quality of their risk management, the Bloomberg View ediorial board says.
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  • Editor’s Picks / 08 February 2016 at 0:01 GMT

    ANZ Bank cooperating with interest-rate benchmark probe

    Bloomberg
    Australia & New Zealand Banking Group said it’s continuing to cooperate with a probe into possible manipulation of Australia’s interest-rate benchmark, amid a report the regulator is on the verge of taking legal action against the bank. The Australian Securities and Investments Commission is expected to file a civil action against ANZ Bank in relation to breaches of the law relating to the bank-bill swap rate between 2007 and 2013, the Australian Financial Review reported on Monday, without citing sources. An announcement is expected in the next few weeks, the newspaper said.
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  • Editor’s Picks / 08 January 2016 at 10:47 GMT

    China's debt scarier than its stock market plunge

    Bloomberg
    If an equity bubble and crash were China’s only problems, the danger might not be so great, says Bloomberg View contributor Noah Smith. Research shows that equity bubbles are less damaging to the real economy than debt crashes, which inflict harm on the financial system and lead to major recessions. "The problem with China is that the stock market crash looks like it's only the most visible sign of a much deeper and broader distortion in the country's financial markets," Smith says, adding that "China probably also has a debt problem." Chinese banks, local governments and companies have relied on various debt instruments sold directly to Chinese individual through a system of so-called shadow banks, he says. "This shadow banking system has enabled a large buildup of bad debt, much of it related directly or indirectly to real estate." If property prices fall and banks are on the hook, that could create conditions for a really destructive crash, Smith concludes.
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  • Editor’s Picks / 07 October 2015 at 3:13 GMT

    Populists, controversy pose hurdles for Pacific trade deal

    The Conversation
    The mammoth Trans Pacific Partnership should bring big benefits to its 12 trading partner nations – including the US, Japan, Canada, New Zealand, Australia and emerging Pacific Rim states. The TPP will eliminate obvious barriers like tariffs as well as sneaky regulatory ones. Its controversial features include its investor-state dispute settlement provision that allows multinationals to bring legal claims against host states. And its obligations concerning regulatory transparency and standardization will necessitate costly reforms for developing countries like Vietnam and Malaysia. Finally presidential candidate Donald Trump promises to renege on the deal if he gets elected. But it's unlikely that any sensible politician will resist the TPP in the longer term.
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  • Editor’s Picks / 02 May 2014 at 5:16 GMT

    Traders join exodus as forex probes add pressure on costs

    Bloomberg
    The foreign-exchange market is losing a slew of traders from big banks as a probe into alleged manipulation of benchmark rates widens and pressure mounts on the industry to reduce costs.
    More than 30 traders from 11 firms have been fired, suspended, taken leaves of absence or retired since October, when regulators said they were investigating the market, according to data compiled by Bloomberg. London-based Barclays Plc (BARC) and Zurich-based UBS AG (UBSN) have been the worst-hit, each suspending at least half a dozen employees, the data show.
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